Enprise Group reports 22 percent profit increase in half year results

Enprise Group (NZAX: ENS) today reported strong year-on-year growth in revenue and profit for the half-year to September 30, 2017.

Total half-year revenue rose 10.40% to $4.7 million. Of this, Australian revenue grew 17% to $1.02 million and New Zealand revenue grew 9% to $3.7 million. Net profit for the period rose 22% to $393,000. Cash and bank balances were $265,000 at period end.

“In this period we grew revenue on both sides of the Tasman, completed a highly strategic acquisition and paid a shareholder dividend,” says Enprise Group CEO Elliot Cooper.

“The profit rise is the result of continued growth in the Australian and New Zealand markets combined with careful management of cost of sale,” he says.

The half-year also saw completion of the acquisition of 47% of Kilimanjaro Consulting, Australia’s biggest MYOB enterprise reseller.

“Synergies between our Enprise Solutions business unit and Kilimanjaro will further boost growth and reduce cost of sale in Australia,” Elliot Cooper says.

“Enprise Group intends to pursue additional investment opportunities to increase growth. These may be inside the MYOB channel or outside it, in synergistic businesses.”

During the period Enprise Group paid a 2017 final dividend of 3.5 cents per share.

Enprise Group is now focused on three businesses – the wholly owned Enprise Solutions and joint ventures Datagate Innovation and Kilimanjaro Consulting.

Enprise Solutions continues to grow profitably in both Australia and New Zealand, providing business solutions based on the MYOB Exo and MYOB Advanced software platforms.

“Kilimanjaro Consulting will leverage Enprise Solutions’ strong positioning across the region in the cloud business software market,” Elliot Cooper says.

“Kilimanjaro customers now have access to ‘Enprise Cloud Path’, a service that ensures businesses chart the smartest path to the cloud. The two companies are also working together to accelerate sales of the new cloud product MYOB Advanced as well as delivery of MYOB Exo via the cloud.

“Datagate Innovation has proven its cloud-based billing engine in the New Zealand market with customers like Spark Wholesale and Dimension Data. Last month it closed a successful rights issue, raising $683,710 of new capital in a move that will enable rapid expansion to capitalise on early success in the North American market,” Elliot Cooper says.

In this period Datagate formalised an agreement for representation in the North American market as Datagate America, and signed its first American customers. Last month Datagate won the ‘Best Newcomer’ award at the ConnectWise IT Nation event in Orlando, with a cloud service to enable direct telecom and utility billing for ConnectWise users.

About Enprise Group

Listed on the New Zealand Stock Exchange Alternative Market (NZAX) on 1 December 2014, Enprise Group (ENS) has three operating divisions: Enprise Solutions and joint ventures Datagate Innovation Ltd and Kilimanjaro Consulting Ltd.

Enprise Solutions is a cloud business software company that is the leading trans-Tasman provider of solutions based on the MYOB EXO and MYOB Advanced software platforms. Enprise Solutions offers cloud options for every piece of software it sells, including a broad range of companion products to extend the power of the MYOB Advanced and MYOB EXO platforms. The company supports around 750 MYOB EXO and MYOB Advanced customers across Australia and New Zealand.

Datagate Innovation provides online billing and reporting solutions for businesses that bill according to subscription or usage. Datagate opens up new recurring revenue opportunities for Telcos, Utilities, Retailers and Managed Service Providers by allowing them to sell, price and invoice their customers for a wide range of services – including phone, internet, electricity and software – all on a single invoice under their own branding.

Kilimanjaro Consulting is Australia’s largest implementer of MYOB’s enterprise-level business management solutions. It services clients in a range of industries in Australia, New Zealand and the Asia Pacific region. It has achieved its leadership position by focusing on customers’ business needs first, developing a rigorous methodology and employing an expert team of more than 60 skilled consultants to support customers every step of the way.